PRECIOUS-Gold extends declines into 2nd day on stimulus worries
SINGAPORE, June 12 (Reuters) - Gold extended declines into a second session on Wednesday as fears lingered that the Federal Reserve could curb its stimulus programme as the U.S. economy shows signs of recovery.
* Spot gold had fallen 0.2 percent to $1,376.29 an ounce by 0022 GMT, after a 0.5 percent drop the day before as equity and commodity markets were rattled by the absence of fresh steps from the Bank of Japan to calm turbulence in the domestic bond market.
* Bullion had fallen to its lowest in nearly three weeks on Tuesday before recovering some of the losses.
* U.S. gold was little changed at $1,376.20.
* A Standard & Poor's upgrade of the U.S. credit outlook on Monday prompted investors to believe the economy was strong enough for the Fed to begin scaling back its bond purchases. Such a step would dent gold's appeal as a hedge against inflation.
* BOJ Governor Haruhiko Kuroda said the central bank would consider fresh steps to calm markets if borrowing costs spike again in the future, but the central bank held off on new measures on Tuesday arguing that bond markets had stabilised.
* Outflows from gold-backed exchange-traded products totalled $5.7 billion in May, compared with $8.7 billion in April, according to Blackrock. In the first four trading days of June, outflows amounted to $374 million.
* Palladium prices have reached their highest versus gold in more than two years this week as a rally in risk assets boosts the appeal of industrial commodities, with further rises likely as the economic recovery gains impetus.
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* The U.S. dollar weakened against the yen, while Japan's Nikkei share average fell around 2 percent on Wednesday.
DATA/EVENTS (GMT) 0530 India Industrial output 0900 EZ Industrial production 1800 U.S. Federal budget 2100 N.Zealand Cen bank interest rate
Precious metals prices 0022 GMT
Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1376.29 -2.70 -0.20 -17.81 Spot Silver 21.69 0.08 +0.37 -28.37 Spot Platinum 1464.49 -15.01 -1.01 -4.59 Spot Palladium 748.72 -0.78 -0.10 8.20 COMEX GOLD AUG3 1376.20 -0.80 -0.06 -17.88 1931 COMEX SILVER JUL3 -- -- -- -- Euro/Dollar 1.3313 Dollar/Yen 96.20
COMEX gold and silver contracts show the most active months
(Reporting by A. Ananthalakshmi; Editing by Joseph Radford)